Windcrest wants title to an office condo that it alleges was purchased with money stolen from the city by brothers Gary and Ronnie Cain.

Windcrest sought the conveyance of the office condo in a lawsuit filed this week in the bankruptcy of the partnership that owns the property.

The office condo is owned by Lyn Family III LP, a partnership that Windcrest alleges is controlled by Gary Cain or Ronnie Cain or Gary Cain's wife.

The partnership filed for Chapter 11 bankruptcy reorganization on Oct. 1, listing about $2 million in assets and more than $1.5 million in liabilities.

It sought bankruptcy protection to prevent the condo association from foreclosing because of unpaid association fees, according to Steve Cennamo, the partnership's bankruptcy lawyer.

Cennamo added he didn't know anything about Windcrest's claims against the partnership.

The office condo, unit 101 at 242 W. Sunset Road, is appraised at $274,140 by the Bexar Appraisal District.

The Cain brothers are accused of embezzling $2.8 million from a Windcrest account funded by Rackspace Hosting Inc. for the city to use for infrastructure improvements around the company's headquarters in the former Windsor Park Mall.

Ronnie Cain, Windcrest's one-time city manager, was charged in 2010 with six felony counts. Gary Cain, a developer, was charged with four felony counts. Both deny the charges. They could spend the rest of their lives in prison if convicted.

The brothers had been scheduled to go to trial last month, but the proceeding was postponed.

Ronnie Cain retired from the city in 2010, about eight months before he was indicted.

Windcrest alleges in its lawsuit filed in the bankruptcy case that some of the $2.8 million “purloined” from the city in April 2008 was used to buy the office condo in May 2008.

The property was transferred from two entities controlled by Gary Cain before it ultimately was transferred to Lyn Family III in November 2008, Windcrest states in its lawsuit.

“The City has a claim against and a right to payment or property from Gary Cain because the sham entities are his alter egos,” the lawsuit adds. Attorneys representing the city in the bankruptcy action didn't respond to requests for comment.

State corporate records show Ronnie Cain has been the manager of the general partner for Lyn Family III.

Cennamo said there are Lyn Family III creditors, including the Internal Revenue Service, that may have an interest in the office condo. The IRS is listed in the bankruptcy as the largest creditor, owed nearly $1.5 million — a figure disputed by the partnership.

Windcrest's lawsuit marks the latest twist in what's been an ongoing legal saga.

Last week, Gary Cain dropped a $400 million defamation action against Windcrest after being told he'd have to waive his constitutional right against self-incrimination if he wanted the matter to proceed.

Rackspace kicked off the legal sparring in 2009 when it sued Gary Cain and others seeking to recover the $2.8 million allegedly taken by the brothers.

Windcrest intervened in the case early last year with its own fraud claims against Gary Cain and other parties.